NH school districts locked into high oil prices

CONCORD, N.H. (AP) _ As heating oil prices decline, many New Hampshire school districts find themselves locked into high prices they thought were a good deal months ago.

The district that includes Allenstown and four other towns bought into a contract in September and will pay $3.45 a gallon all winter, or about 30 percent more per gallon than the current price.

"With the stock market going crazy, oil prices were going crazy at the same time. Come September, you've got to make sure you have something for the schools," said Peter Aubrey, the district's business administrator. "The crystal ball doesn't work anymore in today's conditions."

Concord almost had it worse. In July, it locked in at $4 a gallon, but officials were able to re-negotiate a lower rate last month of $3.48 a gallon in exchange for doubling their oil purchases.

"Who knew that prices would continue to drop?" said business administrator Michele Croteau. Even with the new price, she expects energy costs to put the district $310,000 over budget this year.

It's a common story across the state, said Mark Joyce, director of the state's School Administrators' Association. He said districts are trying to cut energy costs by doing everything from a complete building audit to retrofitting lighting and eliminating use of appliances like coffee makers and refrigerators.

Some districts are turning down their thermostats a few degrees or teaming up with other districts to buy fuel in bulk.

In Pittsfield, the district has asked teachers and employees to lower thermostats in classrooms, cafeterias and hallways and to be vigilant about closing shades and blinds, said Superintendent John Freeman. The district is locked into paying $3.88 a gallon for oil, but "we think that we're going to be OK," he said.

"We are watching spending very carefully, and the fiscal year budget is frozen," he said.

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Information from: Concord Monitor, http://www.cmonitor.com

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